Question

Alex, a depositor, issued a check payable to the order of Ben in the amount of Php 100,000. Ben then deposited the check to his account in Metro Bank. After the check cleared, Ben withdrew the entire amount from his account. However, upon presentation of the check to the drawee bank, it was discovered that the signature on the check was forged. The drawee bank, ABC Bank, dishonored the check and refused to pay the amount to the holder. As a result, Ben filed a complaint against ABC Bank, asserting that the bank's negligence in failing to exercise due diligence in verifying the authenticity of the signature on the check caused him damage.

As the lawyer of ABC Bank, discuss the liability of the bank as a drawee and its required diligence under the General Banking Law (R.A. No. 8791). Cite relevant laws and jurisprudence to support your arguments.